Telefonica, SA, ( TEF , quote ), like AT&T ( T , quote ) and Verizon Communications ( VZ , quote ), offers mobile, fixed line and other communications services. But headquartered in Madrid, Telefonica SA has substantial operations in Latin America.
Almost two-thirds of the fixed and mobile phone services customers for Telefonica SA are in Latin America. This results in about half of the revenues and earnings for Telefonica SA emanating from this region.
As detailed on www.emergingmoney.com in a previous article, " Telefonica SA wants to grow "local silicon valleys ," it is also investing in start-ups to diverisfy its business interests.
Telefonica SA stock was recently at $18.55 with a 52-week range of $16.89 to $27.31.
The company has a market cap of $85 billion. The operating margin is 14.9% and the net profit margin is 6.4%, with a dividend of around 11.5%.
By contrast, AT&T (T) has a dividend yield well under 6% and the dividend for Verizon Communications (VZ) is 5.2%.
Telefonica has a 4-star rating from Morningstar. The short float is only 0.23%. The price-to-earnings ratio is around 5.
It has been a difficult year for Spanish stocks, but the phone company is not going bankrupt. The 11.5% yield of Telefonica SA (TEF) pays for the wait for the return of its share price to its 5-year high of almost $35.